13 August, 2012

NEW YORK - In its August trend report, JWT, the world's best-known marketing communications brand, explores how China's leading crop of brands is chipping away at some of the key factors standing in the way of global success.

China is actively seeking to export more than just the rest of the world's manufactured goods. But before the country can develop a cohort of strong brands, its marketers will have to remake what "Made in China" means to consumers. "Changing perceptions of Chinese-made goods won't be easy. But we're seeing some bold Chinese brands starting to do so, using an array of strategies. As we move into what many forecast will be a 'Chinese Century,' there is tremendous potential for Chinese brands to break through," says Ann Mack, director of trendspotting for JWT.

This report details the external and internal factors hindering the efforts of Chinese brands to take root in developed markets, examining the negative perceptions among Western consumers as well as reasons that most Chinese firms can't yet compete with global brands. It also details some of the strategies that leading Chinese brands, from Lenovo and Li-Ning to Haier and Huawei, are deploying to knock down these roadblocks to expansion. Researched on the ground in Shanghai, the report includes the results of a JWT survey that explored how American and British consumers feel about China and the products and brands coming out of the country.

"Remaking 'Made in China'" is the result of research conducted by JWTIntelligence throughout the year. Specifically for this report, JWTIntelligence fielded a quantitative study in the U.S. and the U.K. using SONARTM, JWT's proprietary online tool, from May 31-June 4, 2012, surveying 503 Americans and 503 Britons aged 18-plus. In addition, we conducted on-the-ground research in Shanghai, Beijing and Hong Kong, and interviewed several experts and influencers, including Tom Doctoroff, JWT North Asia area director and Greater China CEO for JWT Shanghai.

Our survey found that consumers are carrying over their negative perceptions of Chinese-made onto Chinese-branded; for instance, fewer than 3 in 10 respondents with low opinions of Chinese brands had personally had poor experiences with Chinese labels. "Given this handicap, Chinese brands looking to make their mark must compete at or above a world-class level," says Mack. "But it's important to note that consumers have positive perceptions of China too—especially around its heritage and people—and brands have opportunities to drive new conversations about the Middle Kingdom."

To download the full report, click here. Additional knowledge and research on JWTIntelligence.com includes recent trend reports on food, music, second-screen marketing, Gen Z, 10 Trends for 2012 and 100 Things to Watch in 2012.

About JWT JWT is the world's best-known marketing communications brand. Headquartered in New York, JWT is a true global network with more than 200 offices in over 90 countries employing nearly 10,000 marketing professionals. JWT consistently ranks among the top agency networks in the world and continues a dominant presence in the industry by staying on the leading edge—from producing the first-ever TV commercial in 1939 to today, developing award-winning branded content for brands such as Johnson & Johnson, Diageo's Smirnoff, Macy's, Ford and HSBC. JWT embraces a "worldmade" philosophy, making things inspired by the world through blending technological innovation with international imagination. JWT has forged deep relationships with clients including Bayer, Bloomberg, Brand USA, Cadbury, Diageo, DTC, Ford, HSBC, Johnson & Johnson, Kellogg's, Kimberly-Clark, Kraft, Nestlé, Nokia, Rolex, Royal Caribbean, Schick, Shell, Unilever, Vodafone and many others. JWT's parent company is WPP (NASDAQ: WPPGY). For more information, please visit www.jwt.com and follow us at @JWT_Worldwide.